Chapter 14: China: Talent management in transition
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For the system to work better within the ever-changing domestic and international economic environment, future work needs to critically evaluate the real impact of government policies on talent attraction, development and retention since the open-door and reform policy started in late 1970s. This chapter draws on two theoretical frameworks, human capital and the resource-based view of the firm, to explain the historic evolution and current state of talent management policies and practices in China, the largest transitional economy in the world. The chapter argues for a unique talent management model in which both Chinese government and Chinese culture play important roles. Although human resource management remains a support function for most companies (especially the state-owned enterprises) in China, the talent management landscape is quickly changing. Strategic considerations have been incorporated in the human resource management and talent management practices, especially among the multinational corporations and even in some large state-owned enterprises. The chapter also highlights the unique challenges being faced by Chinese managers and foreign entrepreneurs and points out future opportunities in global talent management in China and beyond. We recommend the following government policy changes to encourage utilizing the talent at home and abroad: continue to develop the economy through reform and open-door policies, support creativity and innovation and implement more vigorous protections of intellectual property rights, expand democracy, fully utilize people who have already returned from abroad and invest more in science and technology.

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Edited by Yipeng Liu
Handbook